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Smart parking with AI and IoT: less congestion and CO2

How can the search for parking spaces in large cities be optimised? Cleverciti's sensor system uses IoT and AI to improve traffic flow in cities and make car park management more profitable.

Graphic of a street with parked and moving cars, street lamps, a pak house and abstract coloured lines.

In brief

  • Problem: Up to 30 per cent of inner-city traffic is caused by the search for a parking space, which leads to congestion, noise and unnecessary CO2 emissions, even though the available parking space is not fully utilised.
  • Solution: Cleverciti's system uses AI-supported optical sensors on the existing infrastructure (e.g. streetlights) to analyse the occupancy of up to 100 parking spaces in real time. The anonymised data is transmitted to the cloud via IoT mobile communications (4G/5G).
  • Advantages: Drivers are guided directly to a free parking space via an app or digital display, which significantly shortens the search time (e.g. by 45% in Cologne). This reduces congestion and emissions while increasing car park utilisation and city revenues.

Urban car parks under pressure

These changes further exacerbate the challenges of finding a parking space in city centers. According to Europe’s largest automobile association, ADAC, around 30 percent of inner-city traffic is attributed to the search for a parking space alone. Paradoxically, even at peak times, only 70 percent of the available parking spaces in cities are occupied on average. The consequences are serious: needless traffic jams, increased exhaust fumes, excessive noise, environmental impact, and a deterioration in the quality of life for residents and visitors.

To tackle the problem, Munich-based Cleverciti has developed an innovative solution in collaboration with the international team of DT IoT: an intelligent parking management system that combines AI-powered sensors with IoT technology.

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How does a smart parking system work?

At the heart of the Cleverciti solution are state-of-the-art optical sensors that can be easily mounted on existing infrastructure such as street lamps. A single sensor can detect up to 100 parking spaces from a height and uses artificial intelligence to analyse their occupancy in real time. The AI models have been specially trained to reliably recognise vehicles in a wide range of weather and lighting conditions, and image processing is carried out directly on the device itself to ensure data protection. For these AI calculations, Cleverciti relies on the latest IoT chips from Nvidia, which are specially optimised for edge computing applications. An integrated radio module then sends anonymised metadata such as the GPS position of the vehicles and the status of the parking spaces securely to the cloud via Deutsche Telekom's 4G/5G network.


AI and IoT make it possible to use the real-time data for various applications, be it for digital display boards, smartphone apps or city car park management. Through regular over-the-air updates to the sensors, Cleverciti can continuously improve both the AI models and the software functions without the need for regular physical intervention on the devices.

The function at a glance

Abstract graphic of a street with lampposts, multi-storey car park and parked cars with bundled lines.

Benefits for motorists, citizens and the environment

"Our aim is to reduce traffic congestion and emissions, enable cities to manage car parking more effectively and improve the quality of life for everyone," says David Parker, CEO of Cleverciti. "And, of course, people who drive into the city centre should be able to find a free parking space more quickly." The system uses digital displays or a smartphone app to guide drivers to unoccupied parking spaces at their destination via the shortest route. This significantly shortens the search time and leads to a noticeable reduction in traffic. In the Cologne district of Nippes, where the system was already implemented in 2020, parking search times were reduced by a whopping 45 per cent. This time saving not only means less stress for drivers, but also has a positive impact on the overall traffic situation in the city.

The environmental aspect is another significant benefit. Emissions and noise in city centres are noticeably reduced. The project in Cologne-Nippes shows that the distance travelled to find a parking space is reduced by 41 percent. This contributes directly to improving air quality and supports cities in their efforts to become more environmentally friendly and liveable.

Cleverciti in Cologne

The Cleverciti system was successfully implemented in Nippes, one of Cologne's busiest neighbourhoods. Here are some of the results:

  • 9 % higher car park utilisation
  • 15 % higher payment rate
  • 41 % shorter distance when looking for a parking space
  • 45 % less time searching for a parking space
  • 200 € additional annual revenue per car park

More revenue for cities and the local economy

The Cleverciti system opens up completely new possibilities for urban planning. Cities receive detailed analyses of parking space usage, which enables better planning and more efficient management. This data-based approach allows those responsible to make informed decisions - be it when reallocating parking spaces, adjusting parking charges or planning new traffic concepts. In Cologne, the car park utilisation rate rose from 88 to 96 percent: two thirds of the parking spaces that previously remained unoccupied on average can now be found by drivers. This significantly increases the efficiency of the existing infrastructure - and the income of the city and car park operators.

Last but not least, the local economy also benefits from the Cleverciti solution. Retailers and restaurateurs in city centres often suffer from the difficult parking situation, which deters potential customers. By making it easier to find a parking space, visitors have more time for shopping or visiting restaurants. This can lead to a revitalisation of city centres and support local businesses. In Cologne, the implementation of the system led to a positive ROI in less than two years.

Global and secure networking via IoT mobile communications

A decisive factor in Cleverciti's success is its collaboration with Deutsche Telekom. "We have switched the data transmission from our sensors to Deutsche Telekom's IoT mobile radio," says Parker. "The global coverage, security and reliability as well as flexible data tariffs were key factors in our decision." The IoT SIM cards from Telekom work worldwide. "This means that we can send our devices, which we manufacture here in Germany, to our customers worldwide. And no matter where the device is installed, it works immediately.

"Networking the sensors via mobile communications enables extensive remote maintenance and update functions. "Telekom also offers us flexible data billing based on actual consumption," says Parker. "This simplifies administration considerably. With other providers, we had to make complicated package changes for each SIM card in order to upgrade or downgrade depending on the expected data requirements for the month.

"Another important point is the security. "With Deutsche Telekom, we have a secure M2M connection and an IPSec tunnel to our data centres. Our devices do not communicate via the public Internet - so no one from outside can try to access the device. This secure connection is very important for us and our customers."

Outlook: Smart cities of the future

Cleverciti plans to expand its technology to other cities worldwide in the coming years. The company is focusing on optimizing parking space management and integrating the solution into more comprehensive smart city concepts. "One of our latest partnerships in Germany is with the City of Celle, where we implemented a new city-wide parking guidance system," says Parker. "And we have already announced some great projects in the US this year. For example, we have launched our solution in Pasadena, California, West Palm Beach, Florida, and Park City, Utah. And we're not stopping there!"

The partnership between Cleverciti and Deutsche Telekom shows how combining innovative technology and reliable connectivity forms the basis for smart solutions in urban areas. It is an exciting step towards more efficient, sustainable, and livable cities.

IoT Connectivity

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IoT Connectivity

The right IoT connectivity coordinates IoT connections across platforms, integrates devices and data via API, and enables global control with the highest security standards. You can manage your IoT projects flexibly, efficiently, and independently of manufacturers.

Potrait photo Kerstin Koch

Kerstin Koch

Marketing Manager IoT

Since 2016, Kerstin has been part of the IoT journey at Deutsche Telekom. Over the years, she has supported numerous marketing and cultural projects – always with the goal of making IoT tangible and relevant. She translates complex topics into clear, user-focused language and puts real customer success stories front and center. In the IoT blog, she highlights selected use cases and references, showing how companies create measurable value with IoT.

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